Key takeaways
- Every FMCSA-licensed carrier is required to carry cargo insurance — the industry minimum is $100,000 per vehicle.
- ShipCargo adds $200,000 of third-party cargo coverage on every shipment, on top of the carrier's policy.
- Cargo insurance covers damage from carrier negligence — not road debris on open transport, personal items, or pre-existing damage.
- Document everything on the Bill of Lading at delivery, photograph damage, and file your claim within 3 days.
Yes, your car is insured during shipping. Every licensed motor carrier is required by the FMCSA to carry cargo insurance. The standard coverage is $100,000 per vehicle from the carrier's own policy. ShipCargo adds $200,000 in third-party cargo insurance on top of that — double the industry standard — on every shipment.
How car shipping insurance works
There are two layers of protection during auto transport. The first is the carrier's own cargo insurance, which covers damage caused by driver negligence during transport, loading, and unloading. The second is additional third-party coverage that protects your vehicle even if the carrier's policy has issues.
The carrier's insurance is mandatory. Third-party coverage is not. Most traditional brokers rely solely on the carrier's policy. ShipCargo maintains $200,000 in additional coverage on every shipment because we believe the standard isn't enough.
What car shipping insurance covers
Cargo insurance covers physical damage to your vehicle caused by carrier negligence during transport — improper tie-down, loading accidents, driver error, and collisions. Coverage applies from the moment your vehicle is loaded until it's unloaded at delivery.
What is NOT covered
- Damage from road debris, weather, or acts of God (open transport only)
- Pre-existing damage not noted on the Bill of Lading
- Personal items left inside the vehicle
- Mechanical or electrical failures unrelated to transport
- Damage to loose parts, aftermarket accessories, or convertible tops with existing wear
How to verify a carrier's insurance
Every carrier's insurance status is publicly available through the FMCSA. Visit safer.fmcsa.dot.gov, search by USDOT or MC number, and check the Insurance tab — provider, policy number, coverage amount, and active status are all listed. A legitimate auto transport company will share the carrier's information before pickup so you can verify it yourself.
How to file a damage claim
- Document damage at delivery. Note it on the Bill of Lading BEFORE signing. Take photos immediately.
- Contact the shipping company within 24 hours in writing, with photos and a description.
- File a claim within 3 days. Provide two written repair estimates, photos, and a signed BOL showing where damage was noted.
- The carrier's insurance processes the claim. If third-party coverage exists, file there too for faster resolution.
Digital photo inspections at pickup and delivery — which ShipCargo provides on every shipment — create timestamped evidence that dramatically simplifies claims.
FAQ
Is my car insured during shipping? Yes. Every licensed carrier is required to carry cargo insurance. ShipCargo adds $200,000 in third-party coverage on every shipment.
How much insurance should I look for? The industry standard is $100,000 from the carrier. Look for companies that add third-party coverage — we provide $200,000.
Do I need my own insurance? No. Your personal auto policy typically doesn't cover damage during commercial transport. The carrier's cargo insurance plus third-party coverage handles claims.
What if the carrier's insurance has lapsed? This is why third-party coverage matters. We verify every carrier's insurance in real time before dispatch and maintain our own $200,000 policy as a backstop.
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